Dell Technologies shares rise on analyst upgrades, AI demand

Dell Technologies Inc. shares rose on Thursday after several analysts upgraded the stock, citing stronger-than-expected demand for artificial intelligence (AI)-optimized servers and improved cost management.

Analysts at UBS, JPMorgan and Deutsche Bank raised their ratings or price targets on Dell, highlighting the company’s exposure to high-margin AI infrastructure as a key driver. UBS upgraded Dell to Buy from Neutral, while JPMorgan lifted its price target to $180 from $150. Deutsche Bank raised its target to $170 from $140, reflecting confidence in the company’s ability to capitalize on AI-driven server upgrades.

Dell’s stock climbed 4% in early trading, extending gains from Wednesday. The rebound follows a recent pullback driven by broader tech sector volatility and concerns over enterprise IT spending. The company has positioned itself as a key supplier of AI-ready servers to hyperscale data centers, a segment expected to grow as corporations accelerate AI adoption.

Analysts also noted Dell’s disciplined cost structure and strong cash flow generation as factors supporting the upgrades. The company reported better-than-expected quarterly earnings last month, with revenue from its Infrastructure Solutions Group—home to its AI servers—rising 24% year-over-year.

Investors will monitor Dell’s upcoming guidance for signs of sustained demand in AI infrastructure, as well as any updates on supply chain constraints that could impact production timelines.